Saed News: The American newspaper The New York Times warned that the U.S. debt crisis, which has now exceeded the size of the country’s economy, is no longer just a financial crisis, but has turned into a chronic psychological and political crisis.
According to SAEDNEWS, the New York Times reported that the situation in which U.S. debt surpasses the size of the national economy is no longer merely a financial issue, but has become a normalized psychological and political crisis combined with persistent budget deficits and structural debt.
Advocates of reducing the deficit have, over recent years, struggled to find ways to shock politicians and the public into taking the growing federal debt seriously.
The Committee for a Responsible Federal Budget, which calculated federal debt as a percentage of GDP last March, wrote: “In recent years, we have heard many warnings about the fiscal path.”
The Peterson Institute also described this level as a concerning financial indicator. More worrying is the fact that no end to this crisis is in sight.
U.S. debt has been worsened by spending related to the 2008 global financial crisis, the COVID-19 recession, rising elder-care costs, and repeated tax cuts. The last time U.S. federal debt exceeded GDP was immediately after World War II.
The U.S. Congressional Budget Office projects that public debt growth will continue and could reach 175% of GDP by 2056.
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